- Wix.com Ltd. (NASDAQ:WIX) reported earnings per share of $2.28, surpassing the estimated $1.75, and revenue of approximately $489.93 million, exceeding estimates.
- The company has seen a 14% year-over-year increase in new cohort bookings, with significant growth in July bookings.
- Wix’s acquisition of Base44 aims to expand its total addressable market and capitalize on the growing demand for application development, projecting an ARR of $40 to $50 million by year-end.
Wix.com Ltd. (NASDAQ:WIX), a leading player in the SaaS website builder industry, has recently announced its impressive financial results for the second quarter of 2025. The company, known for its user-friendly platform that enables users to create websites without extensive coding knowledge, competes with other website builders like Squarespace and Weebly. On August 6, 2025, Wix reported earnings per share of $2.28, surpassing the estimated $1.75. Additionally, the company reported revenue of approximately $489.93 million, exceeding the estimated $487.33 million.
Wix’s strong performance in the second quarter is attributed to significant improvements in its business fundamentals. The company has experienced a 14% year-over-year increase in new cohort bookings, with July bookings achieving over 20% growth. This momentum is expected to continue, boosting confidence in revenue growth for the second half of the year. Wix’s top-of-funnel performance has been robust, with improved conversion rates in key markets like the U.S., U.K., and Europe.
A pivotal development for Wix is its acquisition of Base44, which aims to expand its total addressable market to include application development. This strategic move is expected to complement the Wix ecosystem and capitalize on the growing demand for vibe coding. Base44 is projected to reach an annual recurring revenue (ARR) of $40 to $50 million by the end of the year, with potential acceleration towards the $100 million ARR milestone.
Wix’s financial metrics offer insights into its market valuation. The company’s price-to-earnings (P/E) ratio is approximately 48.19, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 3.93, reflecting the value placed on its revenue. The enterprise value to sales ratio is around 4.10, showing the company’s total valuation relative to its sales. The enterprise value to operating cash flow ratio is approximately 14.11, suggesting how the company’s valuation compares to its cash flow from operations.
Despite a negative debt-to-equity ratio of -5.71, indicating more liabilities than equity, Wix remains focused on strategic growth initiatives. The company’s current ratio is approximately 0.79, suggesting potential challenges in covering short-term liabilities with current assets. However, Wix’s positive trajectory and strategic growth initiatives, as highlighted by its updated full-year 2025 outlook, reflect its commitment to maintaining its market position and driving future growth.
